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news.Abraxis BioScience has received a $3 million milestone payment from Taiho Pharmaceutical Company after initiation of a phase I clinical trial of the anticancer drug Abraxane in Japan.
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On May 27, 2005, Abraxis entered into a license agreement with Taiho, a subsidiary of Otsuka Pharmaceutical, under which Abraxis granted Taiho the exclusive rights to market and sell Abraxane in Japan.
A joint committee was also established to oversee the development of Abraxane in Japan for the treatment of breast, lung and gastric cancer and other solid tumors. The Japanese market for chemotherapy agents currently accounts for approximately $2.6 billion.
At the signing of the licensing agreement, Taiho paid the company an upfront payment of $20 million. Abraxis is entitled to additional payments of $35.5 million, which excludes the milestone payment just received, upon the achievement of various clinical, regulatory and sales milestones. Abraxis will also receive royalties from Taiho based on net sales of Abraxane in Japan. Abraxis will supply Taiho with Abraxane for the Japanese market at an undisclosed transfer price.
The FDA approved Abraxane for injectable suspension for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease or relapse within six months of adjuvant chemotherapy.